While perhaps not the torrent of new best buys that we and many savers were hoping for following last week’s base rate rise, the number of new best buys has been steadily increasing over the last seven days.
One of the most interesting changes for those with a keen interest in future base rate rises has been the launch of a new 60 day notice cash ISA from Monmouthshire Building Society, which is guaranteed to track the base rate going forward – from a competitive starting point.
Take a look at our variable rate cash ISA best buy table to see where it sits in today’s market.
Elsewhere, competition in the fixed rate bond market has been rife this week, with Secure Trust Bank grabbing the headlines by taking top spot in four of our five fixed rate bond best buy tables.
Other providers getting in on the best buy fixed rate act were Investec, OakNorth, and The Family Building Society.
Secure Trust Bank was also busy in the notice account market last week, now occupying four out of the five available positions in our notice account best buy table.
There wasn’t much change amongst fixed rate cash ISAs over the last week, with the most notable change coming from Paragon – now topping our one year best buy table.
For those looking to wait and see what happens with rates, by keeping their funds accessible, there were fewer changes, with Coventry Building Society still topping our easy access best buy table.
So, a marked increase generally in activity over the last seven days and hopefully there will be even more in the coming days and weeks, so continue to watch this space and we will keep you up to date with all the latest news.
And remember to submit your review to rate any of your new or existing savings providers to help us provide insight for your fellow savers.
If you're unsure if cash is the best investment for you and feel you might benefit from speaking to a Chartered Independent Financial Adviser, we may be able to help you.
Or call us on 0800 011 9705
Variable rate cash ISAs
With so much focus on the Bank of England base rate over the last week, one of the most interesting changes this week has been the launch of a new cash ISA that tracks the base rate.
Monmouthshire Building Society launched a 60 day notice cash ISA that is currently paying 1.30% tax free/AER. The rate is guaranteed to be no lower than 0.55% above the Bank of England base rate, so will rise and fall with any future changes to the rate.
The account currently pays a competitive rate, making it into our top five variable rate cash ISAs and could be an interesting option for those that feel that there will be further base rate rises in the future.
Fixed rate bonds
Secure Trust Bank grabbed the headlines in this area of the market this week, which has resulted in the provider topping four out of five of our fixed rate bond best buy tables.
Below is a summary of the new rates, all of which are top five for the respective terms;
1 year fixed rate bond - 2.02% gross/AER
2 year fixed rate bond - 2.26% gross/AER
3 year fixed rate bond - 2.37% gross/AER
4 year fixed rate bond - 2.51% gross/AER
5 year fixed rate bond - 2.69% gross/AER
6 year fixed rate bond - 2.71% gross/AER
7 year fixed rate bond - 2.76% gross/AER
Also competing in this area of the market this week was The Family Building Society, launching a new one year fixed rate bond paying a leading rate of 2.11% gross/AER.
The key thing to note with this account however is that it requires a higher than usual minimum opening balance of £20,000 – so won’t be suitable for those with smaller amounts to deposit.
Also making improvements was Investec, with its new versions of its one year (2.05% gross/AER) and two year (2.25% gross/AER) fixed rate bonds, which both make in into the top five for the respective terms. Again, there is a comparatively high minimum opening balance of £25,000 to be aware of.
Finally, OakNorth improved the rate on its five year fixed rate bond to 2.67% gross/AER, taking third position in our best buy table.
For more information on each of these accounts and for other options, please refer to our full fixed rate bond best buy tables.
Notice accounts
Secure Trust Bank has also made waves in our notice account best buy table - taking all but one of the top five positions.
The new rates available are as follows;
180 day notice account - 1.80% gross/1.81% AER
120 day notice account - 1.78% gross/1.79% AER
90 day notice account - 1.75% gross/1.76% AER
60 day notice account - 1.49% gross/1.50% AER
For more information on these accounts, take a look at our notice account best buy table.
Fixed rate cash ISAs
Not a huge amount to report among fixed rate cash ISAs, although there is a new leader in our one year table in the form of Paragon. The new account pays 1.50% tax free/AER.
For the full range of accounts over various terms, please refer to our full fixed rate cash ISA best buy tables.
Easy access accounts
Another quiet week in this category, with Coventry Building Society still ahead of the pack.
The provider’s Limited Access Saver still pays the market-leading rate of 1.40% gross/AER.
This account has a number of terms and conditions to be aware of – you are able to make three easy access withdrawals per year, any withdrawals after that are subject to a penalty equivalent to 50 days’ interest on the amount withdrawn. In addition, the rate includes a 0.25% bonus for the first 12 months, so the rate will drop after the first year.
Next up is Birmingham Midshires with its Internet Saver account, which is paying 1.35% gross/AER.
It is important to note that after 12 months, your money is transferred to a much lower-paying alternative account - just 0.20% gross/AER – so reviewing your account after the first year is essential.
Then comes Tesco Bank and Bank of Cyprus UK*, which both pay 1.34% gross/AER.
Both of these accounts have an introductory bonus, so the rates will fall after the first year and you may need to look at alternatives at that point.
As all four of these accounts have features to be aware of, from restricted withdrawals to introductory rates, it is important to us to ensure that our top five always includes a straightforward account – for those that prefer a simple and easy to understand option.
Performing this role is still Paragon, with its Limited Edition Easy Access (Issue 6), paying 1.31% gross/AER.
For more information on each of these accounts, please take a look at our easy access best buy table.
Our Bath based savings experts are on hand if you would like any help with your savings, so why not give us a call on 0800 011 9705, we’d love to hear from you.
Alternatively, if you want to keep up to date with best buy rates as they hit the market, follow us on Twitter and sign up to our Rate Alert emails.
*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).
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